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Amarillo Gold receives key development permit in Brazil

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(Kitco News) - State regulators have approved the Posse gold mine, said Amarillo Gold today after receiving the License to Install (LI) for its project on the Mara Rosa property in Goiás, Brazil. The license permits the company to start construction.

“Amarillo is one step closer to becoming a gold producer,” said CEO Mike Mutchler. “I’d like to thank the state’s environmental department, the Mara Rosa community, and our dedicated team in Brazil led by country manager Arão Portugal for all their hard work and support in achieving this important milestone,” added Mutchler.

The Posse gold project is located on the company’s Mara Rosa property in Goiás State, Brazil. It will be built into an open pit mine and carbon-in-leach operation with dry stack tailings.

The company said that a definitive feasibility study released in June 2020 showed that Posse will produce gold at an all-in sustaining cost of US$656 per ounce, based on a gold price per ounce of US$1,730 and a foreign exchange rate of 5.3 BRL to 1 USD. Posse has an initial mine life of 10 years, initial gold production of 104,000 ounces per year, and an after-tax net present value 5% of US$360 million.

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